The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-03-11
TIE MIDLAND RAILWAY
BEFORE THE PEOPLE OF FAF.
RTTR FOR CONSIDERATION.
The County Court TO Vote on Prop
ositiOn Of $4,000 Subscrip-
lin on the ED.

aonKRvILLE. TENN, March 9.-The
Reporter and Falcon contains the fol
lowing from a correspondent: The
Tennessee Midland Railway Company
have in accordance with recent act
parsed by the Leg ature submitted a
proposition TO the Teople If Fsyette
county. They ask that the ChiiTmsn
OF the County Court convene the cou't
in a spe cial meeting TO take action pom
the application OF Il 9 railway COM
pany to submit TO the people whether
Fsyette county will subscribe $4,000
to the capital stock OF the company.
The Cha rman has Issued his notice
for such meeting to be held at The
courthouse in somPrville on Thus.
day, the oath OF M Arch, 1887, at 10
o'clock am. 1t Is the duty of every
Justice in the county TO be present at
that time and consider we'll the ques-
ton to be submitted to them.
The Ju;tices should not get
the erroneous idea into their heads
that they will be called ON to vote this
money-on the contrary, they will
only BIS asked TO subm I the question
to the people at the polls for accept
ance or ri ction. 1t is presumed, of
conrse, tnat the court will have no OBJ.
lection to allowing the people, who
are most interested, to vote on the
meter.
Your correspondent, without, at
this time, goiog fully into an argument
in favor the subscription, will yet
give few facts, which your intelli-
gent readers can use as base Of argu-
ment.
The Tennessee Midland will have
thirty miles Of road Ia the county,
and will be valued as hiah as the Mem.
phis aud Charleston Railroad, whose
valuation is fixed at SIS. 6l0 per mile,
or might be valued as highly as the
illinois Central, at $l9,7u5 per mile
THIS would add in tax bile values at
say $15, 800 per mile, low estimate.
1896, 900, which Is twice the value of
all The town lots in the county, and
nearly one-fourth as much as all the
taxable value OF the county fums,
town lots, etc, exclusive OF the other
railroads, and casting them In, would
make il one.ffth. The present rate of
county taxation is 70 cents, which
wouli indicate an increased revenue
from this new road OF cay 10 534,
which would be brought into the
treasury by one road alone. This is
the county's ledger on the debit side.
In order to raise $4,000 the county
would have to issue her )nds, which
would be z eed ly Grabbed up, bear
4 per cent. interest coupons. This
would neces4it4te an annual int est
rae tf say 5000. Now balance the
sheet and 1t will leave 1884 in favor OF
the county, which could be set aside
as sinking fund II desired.
But let us consider the matter still
further. Toe county ia not asked to
make free gift of $75 900 to the rail-
road. On the other hand, az soon as
the railroad is completed and the cars
Running ear through her territory,
she would be asked for her bond,
and in return would be entitled to re.
ceive and would receive SO, 900 OF the
capital stock OF the company. Now,
the county will have that much vote
in saying who shall be directors and
how the road shall be RON, and
II the road is conducted upon
strictly busioess principles it
will pay dividend. To instance,
the Illinois Central last year
paid two dividends OF 81 per cent.
each. Many roads which have not
been ground down with debt pay div
idends. The Memphis and CHARLES
ton railroad, for years after its compile
ton, paid large divldrnds. Suppose,
however, that the county does not
care to hold her stock, she can go into
tie market and dispose OF il, and it 10
reasonable to suppose will be worth as
much ss the Memphis aud Char eston
thu Mississippi and Tonnes
see railroad and 9th, rs. whose roads
have large bonded debt, They are
now worth In the market 80 cents on
The dollar, but your correspondent
thinks the MidlsL d stock will be worth
par value. Admit, however, that
these cert ficates Can only be sold for
% cente, 1t will leave TIE unity in
sbt about $4,000 OF $4,000, which
,ould essiy be paid a 10 taxes from
ibis road alone in f4w years.